It seems that wherever we go, people are talking about the Fourth Industrial Revolution. New technologies are changing the way we work, but Australia will need to make some changes to become a pioneer in the future of production.
According to the World Economic Forum’s 2018 report, Australia is a ‘high-potential country’, meaning that while its current digital placement is limited, it could be well-positioned for the future. Encouraging digital transformation in Australia will ensure this future becomes reality.
The current state of Australian digitalisation
According to a McKinsey study, Australia has only declined in productivity since 2005. Meanwhile, most large developed countries have exceeded its growth, with Germany, Japan and Russia among the leaders. One of the biggest areas Australia lags behind in is manufacturing. The mining industry is a significant part of Australia’s economy. It can help drive technological change (see Rio Tinto’s Mine of the Future). However, manufacturing often becomes the lower priority in favour of mining. A substantial amount of manufactured material is actually imported, as opposed to manufactured within Australia itself.
The WEF looks at several aspects to measure a country’s productive state: technology and innovation, investment, sustainable resources, demand, and human capital. Australia has the worst Structure of Production among the G20 countries. Manufacturing makes up a very small percentage of Australia’s growth.
The future state of Australian digitalisation
To position itself better as a driver and innovator, Australia must place itself ahead in manufacturing and production. It is already moving towards improving its productivity and manufacturing growth. Australia has an Industry 4.0 program as part of a cooperation agreement with Germany’s leading Plattform Industrie 4.0. The cooperation agreement aims to implement and encourage:
- Work and education
- Industry 4.0 Testlabs
- The security of networked systems
Australia possesses a Digital Economy Strategy. It aims to optimise technological change through development, government intervention, data improvement, and better cybersecurity and regulatory standards.
So, while Australia may not currently drive production, this could change in the near future. Innovative policies are vital to the future of Australia’s production. Movements like this will assist in its digital progression.
What are we doing to help?
Blockhead Technologies is an Australian-Canadian company. We want to ensure that Australia is ready for the Fourth Industrial Revolution. That’s why we’ve created STAMP, a blockchain-backed platform that is designed to trace supply chains. Blockchain is a promising technology that will be an integral part of Industry 4.0. We want to put ourselves – and Australia – ahead.